Japan Bank for International Cooperation (JBIC) has signed a US$465 million loan agreement with AM/NS Calvert, a US-based joint venture between Nippon Steel Corporation and Luxembourg-based ArcelorMittal. The loan is co-financed with Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation, bringing the total co-financing amount to US$775 million.

The loan is intended to provide the funds required by Calvert to build a new electric arc furnace (EAF) for its steel sheet manufacturing and sales business in Alabama.

The United States is the world’s second-largest consumer of steel products. It has a stable demand for steel products for automobiles, including from Japanese manufacturers, infrastructure and other purposes, JBIC says.

Nippon Steel aims to utilize the new EAF to further strengthen Calvert’s ability to supply a full range of steel products in North America, and to obtain alternative manufacturing processes for steel products in addition to the blast furnace process. 

Overall, the loan will support Nippon Steel's global business expansion, thereby contributing towards maintaining and improving the international competitiveness of the Japanese industry. 

After founding Calvert, Nippon Steel and ArcelorMittal jointly acquired ThyssenKrupp Steel USA in 2014.